The SPY Expectations from here.

Well, we had the big reversal yesterday. The question is where to from here?

Is it a dead cat bounce in a bear market? Or is this the beginning of a V-shaped recovery?

I am looking at it in the most simple way I can. Yet not too simple that it makes no sense. I will use the $SPY daily chart to assess.

The $SPY price is still below the 20-day moving average. That is at around 553 and is the first level of resistance. (see red curve in picture).

The $SPY price is now well above the 525 level which is the level that we found resistance 3 days in a row prior to yesterday. That now becomes the support.

Then I have shown the "bull path" and the "bear path" in the picture below.

If price holds that 525 level and goes above the 20-day moving average we will make a higher high. And we are on our way higher (potentially).

If price does not hold the 525 level and falls below that, then we may be going bacl to test the lows again.

I will be watching these levels.

Have a great day.